Drivers of Productivity: a Case Study of the Australian Construction Industry

Australian construction productivity has grown slowly since 1985 and remains arguably stagnant. The importance of this study is therefore to examine several factors through to be drivers of construction productivity and to understand possible avenues for improvement. The drivers tested are research and development, apprentices, wage growth, unionisation and safety regulation. Expenditure on research and development and the number of apprentices were found to be drivers of productivity growth in Victoria, New South Wales and Western Australia. These findings are important because collectively, these three states account for a majority of construction activity in Australia.